Bitwise has taken a decisive lead in the Avalanche ETF race by updating its U.S. SEC filing to include staking, a first-of-its-kind proposal in the American spot crypto ETF landscape.
Submitted on November 27, 2025, the new filing outlines plans for the Bitwise Avalanche ETF under the ticker BAVA, complete with an aggressive fee structure designed to capture early institutional demand. The move intensifies competition among issuers seeking to secure listings on major U.S. exchanges during a year defined by rapid ETF expansion.
Bitwise Introduces Staking to a U.S. Spot Crypto ETF
The most notable element of the filing is Bitwise’s intention to stake up to 70% of the ETF’s AVAX holdings, allowing the fund to generate additional yield directly on-chain. For traditional investors, the model removes the operational friction typically associated with staking, no private keys, no validator setup, and no wallet management. Instead, staking rewards would flow into the fund, enhancing the underlying return profile without requiring user participation.
Competitive Fees Aim to Accelerate Adoption
Bitwise is also positioning BAVA with a 0.34% sponsor fee, placing it on the lower end of altcoin ETF products. In a bid to accelerate early asset growth, the company is waiving all fees for the first month or until the ETF reaches $500 million in AUM, echoing promotional strategies used in its prior altcoin launches. If approved, the ETF is set to list on NYSE Arca, further strengthening the firm’s footprint after its European AVAX staking ETP debuted on Deutsche Börse Xetra in October 2025.
Custody and Structural Safeguards
Avalanche tokens held within the ETF would be secured by Coinbase Custody Trust Company, which will store the assets in segregated cold-storage accounts. This mirrors the custody model used by most U.S.-listed crypto ETFs and aligns with regulatory expectations for institutional-grade asset protection.
Implications for the Avalanche ETF Race
Bitwise’s updated filing instantly raises the stakes for competing issuers. Grayscale, which submitted its own spot AVAX ETF proposal earlier this year, now faces pressure to evaluate whether staking must be integrated to remain competitive. The timing is also notable: the update follows the UK’s proposed “no gain, no loss” DeFi tax framework, which would offer clearer treatment for staking returns, a shift that could influence global investor appetite.
Market response has been quick. AVAX saw a price jump following the announcement, reflecting optimism that a staking-enabled ETF could draw deeper institutional participation into the Avalanche ecosystem. With regulatory review underway, the industry now watches to see whether the SEC will allow staking to become part of the next wave of spot crypto ETFs.
